In some parts of the country, edible oil is being sold at prices higher than the Maximum Retail Price (MRP).
Such a situation has been observed since the middle of the holy month of Ramadan.
Not only that, in certain areas five-litre bottles of edible oil are unavailable. In some cases, retailers are also refusing to sell more than one bottle to a customer.
Consumers are paying Tk 5 to 10 more per litre for soybean oil in the retail market.
Chain shops such as Shwapno and Meena Bazar have displayed notices stating that the stock of edible oil is limited and that no customer will be allowed to purchase more than one bottle.
The MRP of a one-litre bottle of soybean oil is Tk 190 to 195, while the MRP for a five-litre bottle ranges from Tk 920 to 955. These prices have been in effect since 7 December.
According to the government agency Trading Corporation of Bangladesh (TCB), the lowest price of a five-litre bottle of soybean oil has increased by Tk 30 over the past week, and it is now being sold at Tk 950 to 955.
The price of loose soybean oil has increased by Tk 7 to 10 per litre, selling at Tk 185 to 193 per litre.
Meanwhile, the price of loose palm oil has risen by Tk 6 to 13, and it is now selling at 163 to 168 per litre.
There are 12 large grocery shops in the alley off Dilu Road in New Eskaton, Dhaka. Shopkeeper Ramiz Molla told Prothom Alo yesterday, Saturday, “We are not getting oil from the dealers. We ourselves have to buy it from them at the MRP.”
He added, “If we do not keep oil in stock, customers go to other shops, so we have to keep it even with very little profit.” He questioned, “How can it be viable if we do not make a profit of Tk 5 to 10 from selling a single bottle of oil?”
A customer named Sohag Mia was also seen arguing with Ramiz Molla. Speaking to Prothom Alo, he said, “Small or large, all traders are the same. Somehow or other, they always find ways to cut the public’s throat.”
However, the Minister of Commerce, Khandaker Abdul Muqtadir, described sales above the MRP as isolated incidents.
Referring to his visit to several markets in the Sylhet region yesterday, Saturday, he told Prothom Alo, “The example you mentioned does not represent the general situation across the country. In remote areas of Sylhet, I saw edible oil being sold at the MRP.”
He added, “Tomorrow, (Sunday), I will visit Khatunganj in Chattogram to observe the prices and supply situation of edible oil and other essential commodities.”
On one side of the Dilu Road alley stands the chain shop Shwapno, and on the other side Meena Bazar.
At both outlets, notices state, “Stock is limited. To ensure every customer’s right to purchase soybean oil, each customer may temporarily buy a maximum of one piece (bottle) of oil.” However, these shops are not charging prices higher than the MRP.
At Bismillah Trading in Karwan Bazar, Dhaka, which can be reached from Dilu road, edible oil is being sold at the MRP.
However, the shop is facing a supply shortage. Apart from edible oil under the Fresh brand of Meghna Group of Industries, no other edible oil brands are available there.
Manager Abdur Rahman said, “We are asking for products from all companies, including Rupchanda, but no one can supply them. We received Fresh oil, and that is what we are selling.”
The government held a review meeting on the overall supply of edible oil on 9 March. The minister of commerce chaired the meeting, where owners of edible oil refining factories were also present.
The Bangladesh Trade and Tariff Commission (BTTC) presented an overview of the supply and price situation of edible oil at the meeting. The presentation mentioned a shortage in the supply of edible oil.
The meeting informed participants that seven refining factories are currently involved in the edible oil business.
These are Meghna Group of Industries, TK Group, City Edible Oil Limited, Bangladesh Edible Oil Limited, Bashundhara Multi Food Products Limited, Smile Food Products Limited and Mir Bonaspati Products.
According to the meeting, the current stock of refined and unrefined soybean and palm oil stands at 236,009 tonnes.
Four of the seven factories have opened letters of credit (LCs) for 55,500 tonnes, while 105,353 tonnes of edible oil are currently in the import pipeline for four factories.
The factories release 9,088 tonnes of edible oil into the market every day and supplied 57,644 tonnes over the 15 days up to 9 March.
According to the ministry of commerce, the country’s annual demand for edible oil is between 2.4 and 2.5 million (24 and 25 lakh) tonnes.
Local production of edible oil from mustard and rice bran amounts to around 400,000 tonnes.
Traders say they have been requesting the government to adjust edible oil prices because international prices have increased. However, the government has not responded to the request.
An official of a leading edible oil refining company in the country told Prothom Alo, on condition of anonymity, that they are supplying oil and that the market should not face a shortage. However, he added that the volume of edible oil imports is insufficient.
Meanwhile, regarding a meeting between the minister of commerce and traders last week, the Bangladesh Trade and Tariff Commission stated that the Free on Board (FOB) price of crude soybean oil in the international market — meaning the price up to loading onto a ship at the exporter’s port — has decreased by 6 per cent compared with one month ago.
Last week, the international price of crude soybean oil stood at 1,083 US dollars per tonne, compared with 1,114 dollars per tonne the previous week.
Presenting the overall picture, AHM Shofiquzzaman, president of the Consumers Association of Bangladesh (CAB), told Prothom Alo, “What is happening with edible oil this time is actually an attempt to create pressure on the government. The government only needs to realise that this is their old strategy.”